12 INFORMATION, STRATEGY AND CHANGE
HOTEL monthly A great experience
Technological progress has revolutionized the way we think, act and even travel. Buhalis (2003) writes: ‘Tourism and technology go hand in hand’ (p. 2). Kamel (2003) agrees: ‘Tourism is among the largest online industries and is one of the most important kinds of commerce through the Web’ (p. 246). In tourism and hospitality, we define IT as the technological tools that enable strategic, tactical and operational management. It allows operators to manage information and processes, take decisions, communicate directly with customers and sell their products. Consequently, IT has become, with other core functions, such as marketing, finance, HR and operations, a major asset for any company in tourism or hospitality. It cannot be left out of the SWOT analysis.
Successfully integrating technology across an operation makes it easier to run a tourism business. Organizations, big and small, now often depend on the complex interaction of Internet (for communication between a company and its customers), Intranet (for communication between employees and departments within a company) and Extranet (for communication between different parts of large global companies or between a company and its immediate suppliers). But despite the fact that IT systems have become more and more complex, travelling has never been easier. Go to any travel site these days and you will be offered the opportunity to book hotels, flights, cars, catering and entertainment, and create exactly the experience you want, demonstrating that integration of information technology tools is paramount to travel organizations.
IT can play a role in all business activities, both primary or support. In tourism, most of the primary activities are called ‘front of house’ because they are visible to the consumer (for
instance, advertising, reservations, check-in and payments). Most support activities are called ‘back of house’ (for instance, accounting, pricing and marketing). IT applications exist for all these activities. For front-of-house activities, there are such things as computer reservation systems, touch- screen terminals that allow you to check in, Internet-based travel intermediaries (such as Expedia), or interactive websites and blogs where customers compare notes. For back- of-house activities, there are management information systems (MIS), decision support systems (DSS) and strategic information systems (SIS). Although all these applications are interconnected and seem to work well, the tourism distribution channel has become a complex system involving travel agents, tour operators, retailers, managers of attractions, providers of accommodation and catering, and many more players, as Figure 1 shows.
Business • Management • Marketing • Finance
By Michael Hitchins
disadvantages in the explosive growth of IT in the tourism and hospitality industry. One is the fact that some parties in the value chain seem to have become unnecessary. Tour operators and travel agencies, for example, primarily act as booking offices. As a result it looks as if they are not adding much value. As travellers become more informed and more independent – especially young, experienced and educated travellers – they want to decide for themselves where to go, how to get there and what to do. Tour operators and agencies will need to re-establish their position and realize that they are service providers who possess knowledge and information their customers want. Perhaps this should be seen as an opportunity. Their niche could be the human touch in what many travellers are coming to see as an impersonal industry.
IT/IS • Information systems
• Information Communication Technologies
• Telecommunications
Tourism • Transport • Travel • Hospitality • Leisure • Heritage
Fig.1. from: Buhalis,D. (2003). eTourism: Information technology for stategic tourism management, p. 77
There are many advantages of integrated systems for a tourism operator. They can offer information on destinations, events and attractions, facilitate interaction, establish clubs for customers, provide special offers and deals, and create additional services through partnerships with other companies. In short, they add value to the industry and that is what it is all about. However, there are also some
Tourism operates in an environment undergoing a great transformation, and new technological developments, such as virtual tourism, are growing fast. Virtual-reality museums, virtual communities, personalized electronic travel guides and mobile mapping software are all enabling us to experience tourism destinations before we even go there. Not to mention the virtual communities like Second Life, where virtual tour operators are guiding tours in online worlds and offering virtual holidays, and where real-life travel agents are setting up office. Is this perhaps the ultimate answer to the environmental constraints on global tourism?
References
Buhalis, D. (2003). eTourism: Information technology for strategic tourism management. Harlow: Pearson Education.
Kamel, S. (2003). Managing globally with information technology. Hershey: IGI Global.
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